Quote:
Originally Posted by DJay23
For someone who is new to this, this is the kind of insight I appreciate. Thank you.
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Your goal as a swing trader is to have your winners double your losses, so averaging 10% for your winners and 5% for your losses. With this ratio, you only have to be successful on 50% of your trades to make nice profits across the board. You have to be disciplined though. If you don't set a stop loss on a position entry and it moves 25% or more against you, that's too large a draw down on your capital and makes your success rate have to be that much higher (which is hard).
If you have questions please ask. Trading is different than investing. In trading your must have defined rules and follow some form of technical analysis. You should at least mentally define the difference between your trading positions and long term investing.